What is an Arbitration Agreement?
An Arbitration Agreement is a legal contract used by two or more parties to settle disputes without filing a lawsuit. Through this agreement, the parties agree to forego litigation in the event that there is a disagreement.
An Arbitration Agreement Form is a formal agreement in which the parties agree to resolve any problems outside of court. Instead of going to court, arguments are settled through a private process called arbitration.
Arbitration is a way of resolving a dispute without filing a lawsuit and going to court. With the arbitration process, there is no courtroom involved. It’s often handled in a meeting room where both parties are entitled to legal representation during the process. Witnesses and testimony may be heard, and both sides will have the opportunity to see any evidence provided by the other party. This process is less formal and typically less expensive than a court trial.
Arbitration agreement forms are usually provisions within larger legal documents such as an employment contract or terms and conditions, but can also be stand-alone legal documents.
An Arbitration Agreement Template should clearly indicate:
- That the parties have agreed to resolve disputes to arbitration
- Whether certain types of dispute are excluded from the arbitration provisions
- The seat of the arbitration (this is not necessarily the same as the location of the arbitration hearings but it will normally determine the law governing the arbitration and the laws applicable to enforcing the arbitration award)
- How many arbitrators will be appointed and what expertise they should have
- Whether the arbitration will be institutional or ad hoc (if institutional arbitration is chosen it’s important to accurately name the chosen institution)
- How confidential proceedings are going to be
- Whether the award can be challenged
How to fill out an Arbitration Agreement?
Using PDFRun, you can electronically fill out and download a PDF copy of the Arbitration Agreement PDF in minutes. Fill it out by following the instructions below.
Date of the Agreement
Enter the date the agreement was made, following the format: Day, Month, Year.
Name of First Party
Enter the name of the first party.
Address of the First Party
Enter the address of the first party.
Name of Second Party
Enter the name of the second party.
Address of the Second Party
Enter the address of the second party.
Date of the Original Contract
Enter the date the parties entered into the original contract, following the format: Month, Day, Year. Attach a copy of the original contract.
The parties agree as follows:
Section 1: Claims Covered
This section states that the parties mutually consent to the resolution by final and binding arbitration of all claims and controversies that either may have against each other relating to, resulting from, or in any way arising out of the attached agreement and will waive their right to litigate these issues in court and instead will resolve their dispute through binding arbitration.
Enter the city where the agreement is taking place.
Section 2: Required Notice
This section states that either party may initiate arbitration by serving or mailing a written notice to the other party at the address stated herein. The written notice must specify the claims asserted against the other party. Notice of any claim sought to be arbitrated must be served within the limitations period established by applicable federal or state law.
Section 3: Arbitration Procedure
This section states that after a demand for arbitration has been made pursuant to Section 2 of this agreement, the party demanding arbitration shall file a demand for arbitration with the American Arbitration Association. The parties agree to enter arbitration through the American Arbitration Association and abide by the Commercial Arbitration Rules of the American Arbitration Association.
This section also states that arbitration proceedings shall be completed within 120 days from the date an arbitrator is appointed. This time may be extended by the arbitrator in the interests of justice. The parties may agree to extend this time in writing. The parties agree not to bring any disputes between each other on a collective or class basis; rather, the parties agree to bring such disputes in arbitration on an individual basis only.
Section 4: Arbitrator
This section states that the arbitration shall be conducted by one arbitrator. If the parties cannot agree on the selection of an arbitrator within 20 days of commencement of an arbitration proceeding by service of a demand for arbitration, the arbitrator will be selected by the American Arbitration Association pursuant to the terms of this agreement.
Mark the appropriate box of the arbitrator’s years of experience. You may select:
- 1-5 years
- 6-10 years
- 11-15 years
- 16 or more years
Enter the field of expertise of the arbitrator. Then, mark the appropriate box of how many times the arbitrator has served as an arbitrator prior to this dispute. You may select:
- 1-5 times
- 6-10 times
- 11-15 times
- 16 or more times
This section also states that the arbitrator’s decision will be final and binding. The arbitrator shall issue a written arbitration decision revealing the essential findings and conclusions upon which the decision and/or award is based. A party’s right to appeal the decision is limited to grounds provided under applicable federal or state law.
Section 5: Governing Law
From the drop-down list, select the state where the agreement is taking place.
This section states that the laws of the state mentioned will be applied in the proceedings, without regard to principles of conflict of flaws.
Section 6: Award
This section states that the parties agree to abide by any award issued by the arbitrator and the judgment of any court with jurisdiction may be entered on the award.
Section 7: Arbitration Costs
This section states that the costs of the arbitration will be split by the parties unless otherwise determined by the arbitrator. If this dispute is related to employment, the employer will bear the cost of arbitration. The parties will be responsible for their own litigation fees. The arbitrator may award any fees or costs to the prevailing party pursuant to applicable statutes or case law in the jurisdiction.
Section 8: Miscellaneous
This section states that unless expressly modified in this agreement, the original contract remains unchanged and continues in full force and effect. In the event that any provision of this agreement is held to be invalid, illegal, or unenforceable in whole or in part, the remaining provisions shall not be affected and shall continue to be valid, legal, and enforceable as though the invalid, illegal, or unenforceable parts had not been included in this agreement. Neither party will be charged with any waiver of any provision of this agreement unless such waiver is evidenced by a writing signed by the party and any such waiver will be limited to the terms of such writing. Any modifications to this agreement must be in writing and notarized.
Section 9: Voluntary Agreement
This section states that each party acknowledges and has carefully read this agreement, understands its terms, and agrees that they have knowingly and voluntarily entered into the agreement without reliance on any provisions or representations by the other, except those contained in this agreement. Each party further acknowledges that they have been given the opportunity to discuss this agreement with private legal counsel and has utilized that opportunity to the extent desired.
First Party Signature
Affix the first party’s signature.
By signing, the first party understands and agrees to everything stated in this agreement.
First Party Full Name
Enter the first party’s full name.
Second Party Signature
Affix the second party’s signature.
By signing, the second party understands and agrees to everything stated in this agreement.
Second Party Full Name
Enter the second party’s full name.